Stocks continued their slide through a volatile week. U.S. trade policy drove much of the market’s movement, broadening investors’ concerns about economic growth and inflation.
The Standard & Poor’s 500 Index declined 3.10 percent, while the Nasdaq Composite Index dropped 3.45 percent. The Dow Jones Industrial Average slid 2.37 percent. By contrast, the MSCI EAFE Index, which tracks developed overseas stock markets, rallied 2.85 percent.1,2
Tariffs Take Effect
Big price swings and tariff uncertainty loomed over the entire week. Stocks opened lower out of the gate after the White House confirmed the planned 25 percent tariff on Mexican and Canadian goods would go forward. Soft manufacturing and construction data also put broad downward pressure on markets. Meanwhile, European stocks continued to rally on anticipated defense spending.3
Stocks fell further as tariffs affected Canada, Mexico, and China. Each country announced retaliatory tariffs of their own, further fanning inflationary fears among investors. By Tuesday’s close, all three averages were down 3 percent on the week, and the S&P had given up its post-election gains.4
Markets rebounded midweek after the White House announced a one-month reprieve from tariffs for North American automakers complying with the existing United States-Mexico-Canada Agreement (USMCA). The recovery rally built momentum as the administration hinted that exemptions for other sectors could follow.5
However, as trade policy fatigue rose again, the rebound reversed—despite the White House pausing more tariffs on Canadian and Mexican imports until April 2. Comments from the Treasury secretary defending U.S. tariffs and downbeat economic reports put further pressure on share prices. The Nasdaq entered correction territory, and for the first time in five years, the S&P 500 hit its sixth consecutive day of +/-1 percent price swings.6
Stocks continued to fall after an underwhelming February jobs report. Later, markets rebounded after Federal Reserve Chair Jerome Powell said that the economy “continues to be in a good place” and that the Fed was holding firm on current rates. The S&P, Dow, and Nasdaq all finished Friday in the green despite being down for the week.7
Market Insights
Source: YCharts.com, March 8, 2025. Weekly performance is measured from Monday, March 3, to Friday, March 7. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
Under the Hood
The Institute for Supply Management (ISM) published fresh manufacturing data on Monday. Although headline numbers were decent, a closer look revealed that new orders dropped in January from a years-long high into correction territory while deliveries and prices paid jumped.8
This Week: Key Economic Data
Tuesday: Job Openings. NFIB Small Business Optimism Index.
Wednesday: Consumer Price Index (CPI). Federal Budget. Treasury Announcement.
Thursday: Producer Price Index (PPI). Initial Jobless Claims.
Friday: Consumer Sentiment.
Source: Investors Business Daily – Econoday economic calendar; March 7, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Monday: Oracle Corporation (ORCL)
Wednesday: Adobe Inc. (ADBE)
Source: Zacks, March 7, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
SFG News & Events
Happy St. Paddy’s Day everyone! 🍀
Food for Thought
“Surround yourself with people only who are going to take you higher.”
– Oprah Winfrey
Tax Tip
Are Medical and Dental Expenses Tax-Deductible?
If you file your taxes using itemized deductions, you may be able to deduct medical and dental expenses for yourself, your spouse, and your dependents. According to the IRS, you may deduct only the total medical expenses exceeding 7.5% of your adjusted gross income.
Some types of medical care expenses that may be deductible include:
- Payments for the diagnosis, cure, treatment, and prevention of a disease
- Payments to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitioners
- Paying for inpatient hospital care or nursing home care
- Fees associated with inpatient treatment for alcohol or drug addiction
- Payments to participate in a weight-loss program for a specific disease diagnosed by a doctor (such as obesity)
This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS9
Healthy Living Tip
Perfect Your Pigeon Pose
If you sit a lot at work or have tight hips, the pigeon pose (a popular pose in yoga) might help. It’s a simple pose that anyone can do, even if you don’t have experience practicing yoga. Here’s how to do it:
- First, start on all fours with your hands shoulder-width apart and your knees hip-width apart.
- Next, bring your right knee close to your right wrist and get your shin parallel to the mat’s top.
- Then, bring your left leg back behind you and rest on the mat with your thigh, knee, and shin touching it.
Some find sitting in this pose with their chest upright enough. To increase the intensity of the pose, they lean forward, rest their forearms on the mat, and rest their heads on their hands.
Tip adapted from Healthline10
Weekly Riddle
What binds two people together yet touches only one person at a time?
Last week’s riddle: Lidia immediately went bankrupt after the car she was pushing around stopped in front of a hotel. It sounds sad, but she wasn’t upset. What was she doing?
Answer: She was playing Monopoly.
Photo of the Week
Nordaustlandet, Svalbard, Norway
Footnotes and Sources
1. The Wall Street Journal, March 7, 2025
2. Investing.com, March 7, 2025
3. The Wall Street Journal, March 3, 2025
4. CNBC.com, March 4, 2025
5. CNBC.com, March 5, 2025
6. CNBC.com, March 6, 2025
7. MarketWatch.com, March 7, 2025
8. The Wall Street Journal, March 4, 2025
9. IRS.gov, September 26, 2024
10. Healthline, October 3, 2024
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
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U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
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Please consult your financial professional for additional information.
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